This publication contains statistics of taxation revenue collected by all levels of government in Australia for the period 2001-02 to 2006-07. The taxation revenue statistics presented are for the general government sector and include taxes received from public corporations (i.e. government owned/controlled corporations). The amount of taxes received from these corporations is shown in the relevant tables.

This publication also contains an Appendix on adjusted measures of government revenue, which provides analytical measures designed to facilitate an understanding of the level of government at which revenue is used rather than simply collected.

TERMINOLOGY

In this publication, the term 'state' includes the two territories. Therefore, 'state' refers to 'state and territories' and 'state and local' refers to 'state, territories and local'.

INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Glynis Orrell on Canberra (02) 6252 5735.

SUMMARY OF FINDINGS

TOTAL TAXATION REVENUE

Summary

A distinctive feature of the Australian federal system is that the Commonwealth Government levies and collects all income tax, from individuals as well as from enterprises. It also collects a portion of other taxes, including taxes on the provision of goods and services. The revenue base of state governments consists of taxes on property, on employers' payroll, and on the provision and use of goods and services. The sole source of taxation revenue for local governments is taxes on property.

Total taxation revenue collected in Australia rose $22,039 million (7.4%) between 2005-06 and 2006-07. Taxes on income increased by $13,181 million (7.5%) and taxes on the provision of goods and services increased $4,005 million (5.3%).

TOTAL TAXATION REVENUE

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

$m

$m

$m

$m

$m

$m

COMMONWEALTH GOVERNMENT

Taxes on income

123 065

134 432

145 709

162 974

176 198

189 378

Employers' payroll taxes

156

253

381

292

369

350

Taxes on property

12

13

13

14

14

15

Taxes on the provision of goods and services

53 883

59 371

62 646

64 997

67 822

71 452

Taxes on the use of goods and performance of activities

722

757

811

854

821

793

Total taxation revenue

177 838

194 827

209 560

229 131

245 223

261 988

STATE GOVERNMENTS

Taxes on income

-

-

-

-

-

-

Employers' payroll taxes

9 671

10 162

10 839

11 996

13 092

14 398

Taxes on property

12 434

14 166

16 683

16 043

16 910

19 841

Taxes on the provision of goods and services

6 555

6 990

7 275

7 865

8 172

8 546

Taxes on the use of goods and performance of activities

4 682

5 100

5 597

5 745

6 066

6 126

Total taxation revenue

33 341

36 418

40 394

41 649

44 240

48 911

LOCAL GOVERNMENTS

Taxes on income

-

-

-

-

-

-

Employers' payroll taxes

-

-

-

-

-

-

Taxes on property

6 757

7 224

7 671

8 183

8 710

9 388

Taxes on the provision of goods and services

-

-

-

-

-

-

Taxes on the use of goods and performance of activities

-

-

-

-

-

-

Total taxation revenue

6 757

7 224

7 671

8 183

8 710

9 388

ALL LEVELS OF GOVERNMENT

Taxes on income

123 064

134 432

145 707

162 972

176 192

189 373

Employers' payroll taxes

9 509

10 076

10 862

11 898

13 041

14 286

Taxes on property

19 195

21 395

24 358

24 232

25 626

29 234

Taxes on the provision of goods and services

60 438

66 360

69 922

72 861

75 994

79 999

Taxes on the use of goods and performance of activities

5 404

5 854

6 404

6 598

6 884

6 884

Total taxation revenue

217 609

238 118

257 253

278 562

297 737

319 776

- nil or rounded to zero (including null cells)

Taxes on income totalled $189,373 million in 2006-07 and comprised 59.2% of total taxation revenue for all levels of government. Taxes on the provision of goods and services, including goods and services tax (GST), totalled $79,999 million in 2006-07 and comprised 25.0% of total taxation revenue for all levels of government.

Commonwealth Government Taxation Revenue

Commonwealth Government taxation revenue (including taxes from other levels of government and Commonwealth public corporations) rose 6.8% from $245,223 million in 2005-06 to $261,988 million in 2006-07. In 2006-07, Commonwealth taxation revenue represented 81.9% of taxation revenue for all levels of government. The following graph shows the level of taxation revenue for the two main sources of taxation revenue for the Commonwealth Government. In ABS government finance statistics GST is recorded as a Commonwealth Government tax.

Commonwealth Government Taxation Revenue

State Government Taxation Revenue

State government taxation revenue (including taxes from other levels of government and public corporations) increased 10.6% from $44,240 million in 2005-06 to $48,911 million in 2006-07. Taxes on property were the largest source of taxation revenue (40.6%) for state governments in 2006-07, followed by employers' payroll taxes at 29.4%. The following graph shows the level of taxation revenue for the major sources of taxation revenue for the state governments.

State Government Taxation Revenue

Local Government Taxation Revenue

Local government taxation revenue increased 7.8% from $8,710 million in 2005-06 to $9,388 million in 2006-07. Taxes on property are the sole source of taxation revenue for local governments.

Major Components of Total Taxation Revenue

Income taxes levied on individuals in 2006-07 represented 37.5% of total taxation revenue. In comparison income taxes levied on enterprises represented 21.2%.

GST revenue represented 12.9% of total taxation revenue for all levels of government.

MAJOR COMPONENTS OF TOTAL TAXATION, All levels of government

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

%

%

%

%

%

%

Taxes on income

Income taxes levied on individuals

41.4

39.7

39.9

40.3

39.8

37.5

Income taxes levied on enterprises(a)

14.6

16.3

16.3

17.8

18.9

21.2

Income taxes levied on non-residents(b)

0.6

0.5

0.4

0.4

0.5

0.6

Employers payroll taxes

General taxes (payroll tax)

4.3

4.1

4.1

4.2

4.3

4.4

Other employers labour force taxes

0.1

0.1

0.1

0.1

0.1

0.1

Taxes on property

Taxes on immovable property

4.4

4.4

4.5

4.5

4.5

4.6

Taxes on financial and capital transactions

4.5

4.6

5.0

4.2

4.2

4.5

Taxes on provision of goods and services

General taxes (sales tax)

0.4

0.4

0.4

0.4

0.3

0.3

Goods and services tax (GST)

12.6

13.1

13.3

12.8

13.1

12.9

Excises and levies

9.4

9.1

8.5

8.2

7.7

7.4

Taxes on international trade

2.4

2.3

2.2

2.0

1.7

1.8

Taxes on gambling

1.7

1.6

1.6

1.5

1.5

1.5

Taxes on insurance

1.3

1.3

1.3

1.3

1.2

1.2

Taxes on the use of goods and performance of activities

Motor vehicle taxes

2.0

2.0

2.0

1.9

1.9

1.8

Franchise taxes

-

-

-

-

-

-

Other

0.5

0.5

0.5

0.4

0.4

0.3

Total

100.0

100.0

100.0

100.0

100.0

100.0

- nil or rounded to zero (including null cells)

(a) Includes petroleum resource rent taxes.

(b) Withholding taxes on non-residents are no longer separately identified under the PAYG system. Estimates for 2001-02 onwards are modelled on income flows between residents and non-residents.

MAJOR FACTORS AFFECTING TAXATION REVENUE

The amount of taxation revenue collected in a particular year can be affected by a number of factors, including:

a change in the rate of a tax or levy;

the introduction or abolition of a tax or levy;

one-off special payments;

additional or fewer collection periods during the financial year;

changes to payment arrangements; and

other factors such as economic conditions, population growth, etc.

Major factors affecting taxation revenue in 2006-07 are outlined below. This information has been derived from budget outcomes and annual reports published for the Commonwealth and state governments.

Commonwealth Government

Taxes on Income

Income taxes levied on individuals rose by $1,370 million (1.2%) due largely to a $1,701 million increase in personal income tax partly offset by a fall in fringe benefits tax.

Income taxes levied on enterprises rose by $11,314 million (20.1%) due largely to a $9,153 million (18.0%) increase in company income tax as a result of stronger income growth and profitability. Income taxes paid by superannuation funds also increased by $2,161 million (39.9%) reflecting higher fund earnings and greater taxable superannuation contributions.

The total taxation revenue for New South Wales and Queensland increased by $1,796 million (11.3%) and $1,088 million (14.7%) respectively, driven by increased taxation revenue from stamp duties on conveyances and employers' payroll taxes. The total Australian Capital Territory recorded the highest percentage increase in total taxation revenue of 18.8% ($147 million) in 2006-07, due mainly to increased taxation revenue from stamp duties on conveyances. Total taxation revenue in the Northern Territory decreased by 2.4% due to a fall in the revenue received from stamp duties.

Taxes on Employers' Payroll

Taxes on employers' payrolls increased in 2006-07 by $1,306 million or 10.0%. Tax revenue from employers' payroll taxes increased across most states. The largest increase, in dollar terms, occurred in New South Wales where an increase of $486 million was recorded. Western Australia recorded the largest percentage increase of 18.6%.

Taxes on property

Taxes on property rose $2,931 million (17.3%) due largely to a $2,082 million (19.0%) rise in stamp duties on conveyances and a $745 million (20.7%) increase in land taxes received.

Tax revenue from stamp duties on conveyances increased across all states except Northern Territory. The largest increase occurred in New South Wales where an increase of $929 million (28.7%) was recorded. The largest increase in percentage terms was Queensland which recorded an increase of 30.4%.

Taxes on the provision of goods and services

Taxes on the provision of goods and services increased by $374 million, a rise of 4.6%.

Taxes on gambling increased by $221 million (4.9%), with most of this increase coming from taxes on gaming machines.

Taxes on use of goods and peformance of activities

Revenue from motor vehicle taxes increased by $319 million (5.7%).

TAXATION REVENUE AS A PROPORTION OF GROSS DOMESTIC PRODUCT (GDP)

Total taxation revenue as a proportion of GDP decreased from 30.8% in 2005-06 to 30.5% in 2006-07. As a percentage of GDP, taxation revenue for the Commonwealth Government fell from 25.3% to 25.0%, while taxation revenue for state and local governments increased from 5.5% to 5.6% in 2006-07.

PER CAPITA TAXATION

In 2006-07, taxation per capita was $15,335, an increase of 5.8% from 2005-06.

The Commonwealth Government taxation per capita rose by 5.3% from $11,934 in 2005-06 to $12,564 in 2006-07.

The taxation per capita for state and local governments combined in 2006-07 was $2,792, an increase of 8.4% from $2,575 in 2005-06.

Most states and territories recorded increases in taxation per capita. Western Australia recorded the highest taxation per capita with $3,229 and Tasmania the lowest at $1,950. The Australian Capital Territory recorded the highest percentage increase in taxation per capita taxation with 17.4%. The Northern Territory was the only state or territory to record a decrease in taxation per capita with a fall of 3.0%.

Taxation per capita by jurisdiction is shown in the table below.

TAXATION PER CAPITA (a), by level of government

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

$

$

$

$

$

$

State and Local Government

New South Wales

2 338

2 480

2 604

2 651

2 730

2 980

Victoria

2 176

2 281

2 449

2 509

2 591

2 750

Queensland

1 670

1 861

2 120

2 169

2 271

2 534

South Australia

1 834

2 015

2 272

2 380

2 414

2 591

Western Australia

1 907

2 145

2 502

2 594

3 006

3 229

Tasmania

1 476

1 558

1 695

1 816

1 869

1 950

Northern Territory

1 371

1 490

1 580

1 761

2 091

2 028

Australian Capital Territory

1 805

2 110

2 309

2 169

2 352

2 761

Average

2 051

2 206

2 400

2 458

2 575

2 792

Commonwealth Government

9 104

9 853

10 470

11 311

11 934

12 564

All levels of government

11 139

12 042

12 852

13 751

14 490

15 335

(a) Estimated Resident Population data used in this table is sources from Australian Demographic Statistics, (cat. no. 3101.0). Details of the calculation are in paragraph 13 of the Explanatory Notes section.